PC sales slide to blame as Blackstone withdraws Dell interest

Firm unconvinced by Dell's future prospects

The future of PC manufacturer Dell remains uncertain after investment firm Blackstone ended its interest in the company.

The private equity firm had been inspecting the books with a view to topping an existing $24.4m takeover bid (UK£16.01, AUSD$23.7) led by founder Michael Dell and backed by the Silver Lake investment group.

However, following due diligence, Blackstone seems to have decided that Dell isn't is as good health as it had been led to believe.

A report this week highlighting a 12.7 per cent decline in PC sales at the end of Q1 2013, which was 14 per cent at Dell, also made the firm think twice about splashing the cash.

Unprecedented decline

In a letter sent to Dell's board, Blackstone cited "an unprecedented 14 percent market decline in PC volume in the first quarter of 2013, its steepest drop in history, and inconsistent with management's projections for modest industry growth."

Following Blackstone's withdrawal, another potential suitor Carl Icahn remains the only rival to Silver Lake and Michael Dell's plan to privatise the company.